North America Ready to Drink Tea - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The North America Ready to Drink Tea Market size is estimated at 14.48 billion USD in 2024, and is expected to reach 18.96 billion USD by 2030, growing at a CAGR of 4.60% during the forecast period (2024-2030).
The influence of the cafй culture, with its emphasis on specialty and artisanal beverages, is supporting the market’s growth
The sales value of RTD tea in the North American region registered a growth rate of 8.81% in 2023 compared to 2021. The growth of RTD tea in North America is primarily propelled by the rising consumer emphasis on leading a healthy lifestyle. As consumers become more knowledgeable about the various health advantages associated with RTD tea, the market continues to expand. RTD tea has been shown to reduce headache pain, type 2 diabetes, lower cholesterol levels, as well as reducing the risk of heart attack. As of 2022, about 38 million Americans suffered from diabetes, and approximately 90% to 95% of them had type 2 diabetes.
The United States leads in per capita consumption of RTD tea among North American countries, amounting to an annual average of 18.90 liters in 2022. This preference is largely driven by a taste for convenience and on-the-go consumption.
In 2022, Americans consumed more than 85 billion servings of tea or more than 3.9 billion gallons. Among RTD teas, 62.6% of the RTD tea consumed is served cold or iced. Iced tea is often associated with hot weather and is a popular beverage choice during warmer seasons. The influence of the cafй culture, with its emphasis on specialty and artisanal beverages, is playing a major role in driving the demand for RTD iced tea in the region.
Herbal tea emerges as the fastest-growing segment and is projected to witness a 25.20% sales value growth from 2023 to 2027. The US market for herbal tea is surging, driven by a demand for functional and flavorful beverages, along with the introduction of contemporary flavors.
Sugar-free variants, natural sweeteners, and innovative flavors boost the market growth in the United States
The North American RTD tea market witnessed robust growth, with sales surging by 7.65% in value terms between 2021 and 2023. This growth was accompanied by a notable diversification in RTD tea flavors, spanning from traditional black and green teas to herbal blends and fruit-infused options. The convenience of RTD tea, especially for on-the-go consumption, is gaining traction as lifestyles become increasingly hectic.
In 2023, the United States emerged as the dominant player in the North American RTD tea market. A rising trend among health-conscious US consumers is the preference for RTD teas with lower sugar content, natural sweeteners, and perceived health benefits like antioxidants. Given the high obesity rates in the US, with approximately 100.1 million (41.9%) adults and nearly 14.7 million (19.7%) children classified as obese in 2022, many RTD tea companies are responding by offering low-calorie or sugar-free options.
Apart from the Rest of North America, Mexico is anticipated to register the fastest growth in the sales of RTD tea, with a CAGR of 6.56% by value from 2024 to 2030. As consumers become more health-conscious, the demand for beverages perceived as healthier alternatives to sugary and carbonated drinks is increasing. RTD teas, especially those with low sugar content and natural ingredients, align with these trends. As the RTD tea market evolves, consumers in Mexico may show interest in innovative products, such as those with functional ingredients or unique brewing methods.
North America Ready to Drink Tea Market Trends
RTD teas are viewed as a more nutritious option than carbonated soft drinks and other sugary beverages, which is driving up sales
Tea is the most widely consumed beverage next to water, and it is found in almost 80% of all North American households. Factors such as busy lifestyles, increasing urbanization, and rising health consciousness among consumers are driving the demand for convenient and healthy beverage options like RTD tea in the region.
As consumer awareness about environmental impact grows, RTD tea companies like PepsiCo, Inc., The Coca-Cola Company, Nestle S.A., and others in the market have been actively working towards sustainable packaging solutions.
The economic parameter is one of the important and major factors influencing the consumer’s RTD Tea buying behavior in the North American region. Inflation and supply chain disruptions have quickly become the most prominent challenges for the food and beverages industry. Hence, players are bringing in value packs to attract consumers.
As of 2022, among millennials, 3 in 5 preferred tea, and more than a third (34%) of this group consumed tea every day. The wide range of RTD tea options, including green tea, herbal tea, and more, contributes to its popularity as a nutritious drink.
North America Ready to Drink Tea Industry Overview
The North America Ready to Drink Tea Market is fragmented, with the top five companies occupying 34.32%. The major players in this market are Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The influence of the cafй culture, with its emphasis on specialty and artisanal beverages, is supporting the market’s growth
The sales value of RTD tea in the North American region registered a growth rate of 8.81% in 2023 compared to 2021. The growth of RTD tea in North America is primarily propelled by the rising consumer emphasis on leading a healthy lifestyle. As consumers become more knowledgeable about the various health advantages associated with RTD tea, the market continues to expand. RTD tea has been shown to reduce headache pain, type 2 diabetes, lower cholesterol levels, as well as reducing the risk of heart attack. As of 2022, about 38 million Americans suffered from diabetes, and approximately 90% to 95% of them had type 2 diabetes.
The United States leads in per capita consumption of RTD tea among North American countries, amounting to an annual average of 18.90 liters in 2022. This preference is largely driven by a taste for convenience and on-the-go consumption.
In 2022, Americans consumed more than 85 billion servings of tea or more than 3.9 billion gallons. Among RTD teas, 62.6% of the RTD tea consumed is served cold or iced. Iced tea is often associated with hot weather and is a popular beverage choice during warmer seasons. The influence of the cafй culture, with its emphasis on specialty and artisanal beverages, is playing a major role in driving the demand for RTD iced tea in the region.
Herbal tea emerges as the fastest-growing segment and is projected to witness a 25.20% sales value growth from 2023 to 2027. The US market for herbal tea is surging, driven by a demand for functional and flavorful beverages, along with the introduction of contemporary flavors.
Sugar-free variants, natural sweeteners, and innovative flavors boost the market growth in the United States
The North American RTD tea market witnessed robust growth, with sales surging by 7.65% in value terms between 2021 and 2023. This growth was accompanied by a notable diversification in RTD tea flavors, spanning from traditional black and green teas to herbal blends and fruit-infused options. The convenience of RTD tea, especially for on-the-go consumption, is gaining traction as lifestyles become increasingly hectic.
In 2023, the United States emerged as the dominant player in the North American RTD tea market. A rising trend among health-conscious US consumers is the preference for RTD teas with lower sugar content, natural sweeteners, and perceived health benefits like antioxidants. Given the high obesity rates in the US, with approximately 100.1 million (41.9%) adults and nearly 14.7 million (19.7%) children classified as obese in 2022, many RTD tea companies are responding by offering low-calorie or sugar-free options.
Apart from the Rest of North America, Mexico is anticipated to register the fastest growth in the sales of RTD tea, with a CAGR of 6.56% by value from 2024 to 2030. As consumers become more health-conscious, the demand for beverages perceived as healthier alternatives to sugary and carbonated drinks is increasing. RTD teas, especially those with low sugar content and natural ingredients, align with these trends. As the RTD tea market evolves, consumers in Mexico may show interest in innovative products, such as those with functional ingredients or unique brewing methods.
North America Ready to Drink Tea Market Trends
RTD teas are viewed as a more nutritious option than carbonated soft drinks and other sugary beverages, which is driving up sales
Tea is the most widely consumed beverage next to water, and it is found in almost 80% of all North American households. Factors such as busy lifestyles, increasing urbanization, and rising health consciousness among consumers are driving the demand for convenient and healthy beverage options like RTD tea in the region.
As consumer awareness about environmental impact grows, RTD tea companies like PepsiCo, Inc., The Coca-Cola Company, Nestle S.A., and others in the market have been actively working towards sustainable packaging solutions.
The economic parameter is one of the important and major factors influencing the consumer’s RTD Tea buying behavior in the North American region. Inflation and supply chain disruptions have quickly become the most prominent challenges for the food and beverages industry. Hence, players are bringing in value packs to attract consumers.
As of 2022, among millennials, 3 in 5 preferred tea, and more than a third (34%) of this group consumed tea every day. The wide range of RTD tea options, including green tea, herbal tea, and more, contributes to its popularity as a nutritious drink.
North America Ready to Drink Tea Industry Overview
The North America Ready to Drink Tea Market is fragmented, with the top five companies occupying 34.32%. The major players in this market are Arizona Beverages USA LLC, Keurig Dr Pepper, Inc., Milo’s Tea Company, Inc., PepsiCo, Inc. and The Coca-Cola Company (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Canada
5.4.2 Mexico
5.4.3 United States
5.4.4 Rest of North America
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Arizona Beverages USA LLC
6.4.2 Del Monte Foods, Inc.
6.4.3 Hawaiian Sun Products, Inc.
6.4.4 Keurig Dr Pepper, Inc.
6.4.5 Milo’s Tea Company, Inc.
6.4.6 Nestle S.A.
6.4.7 PepsiCo, Inc.
6.4.8 Red Diamond, Inc.
6.4.9 The Coca-Cola Company
6.4.10 Walmart, Inc.
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Green Tea
5.1.2 Herbal Tea
5.1.3 Iced Tea
5.1.4 Other RTD Tea
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Supermarket/Hypermarket
5.3.1.4 Others
5.3.2 On-trade
5.4 Country
5.4.1 Canada
5.4.2 Mexico
5.4.3 United States
5.4.4 Rest of North America
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Arizona Beverages USA LLC
6.4.2 Del Monte Foods, Inc.
6.4.3 Hawaiian Sun Products, Inc.
6.4.4 Keurig Dr Pepper, Inc.
6.4.5 Milo’s Tea Company, Inc.
6.4.6 Nestle S.A.
6.4.7 PepsiCo, Inc.
6.4.8 Red Diamond, Inc.
6.4.9 The Coca-Cola Company
6.4.10 Walmart, Inc.
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
